Why should I use a bank/credit union?
With interests rates for savings at an all-time low, many people like to joke that you are better off keeping your money under a mattress than inside a bank vault. What these people don’t understand is that financial institutions, like banks and credit unions, offer safe and secure services that can help save you time, money and secure a financial future and stability.
Banks and credit unions make it possible for you to protect your money from loss or theft, allow you to make payments conveniently, maintain finance records, and establish credit. In addition, many banks offer various means of deposit, savings options, and provide access to loans.
Additionally, banks, credit unions, and other financial institutions are supervised and regulated by the federal government, so you can feel assured that your money is safe and protected. Banks must also comply with laws set forth to protect you as a consumer.
How does a bank/credit union protect my money?
While using a bank or credit union is not a requirement, trusting a financial institution is in your best interest. Carrying a lot of cash on you, stored in your dorm room or house, is dangerous. Your money could easily get lost, stolen, or even be destroyed in an unforeseen event, such as a fire. Banks however, are responsible for keeping your money safe and are protected by the federal government.
The FDIC (Federal Deposit Insurance Corporation) insures deposits in regulated financial institutions. Your money is protected by the federal government for up to $250,000. This means that if the bank gets robbed, or some other banking malfunction occurs, your money is insured. Please note that the FDIC does not provide insurance for credit unions. Credit unions are insured by the National Credit Union Administration (NCUA).
What other benefits do banks/credit unions provide?
In addition to guaranteeing your personal and financial safety, banks also provide other benefits as a financial institution.
- Convenience: Using a bank removes the need to carry large amounts of cash with you. And, as technology advances, most banks have eliminated the need to even visit the branch. With drive-up ATMs, direct deposit, online banking, and mobile applications, you can pretty much do all your banking without ever leaving your home.
- Support: Banks employ tellers, financial advisers, and other associates for the sole purpose of providing not only excellent customer service but to also assist you with your banking needs and offer sound advice regarding your financial planning.
- Saving Money: Oftentimes people who do not use banks often resort to using check cashing facilities and succumb to taking short term loans. Using a bank can alleviate the need to use such services.